Proposing the Unprecedented to Avoid Default

Introduction

APA platinum coin (with 10 more zeros than this one) isn’t the only unusual proposal for avoiding default if there is no debt limit agreement.

With the new year, the government reached the $16.4 trillion borrowing limit set by law — the debt ceiling. Disputes between President Obama and Congress over expanding the limit could lead to default or a shutdown of many government services. The president has said he would not debate House Republicans over whether to expand the ceiling since the money would be for “bills that they’ve already racked up.” But what if Congress refuses to extend the limit without spending cuts and tax changes the president won’t accept? Several options have been suggested.

Correction: Earlier versions of this introduction misstated the debt ceiling. It is $16.4 trillion, not $16.4 billion.